The New York Supreme Court, Kings County, ruled on September 8, 2026, against J.G. Wentworth Originations, LLC, in its request to transfer structured settlement payments from Kiyoshi Wilkinson. The court emphasized the importance of protecting consumers in structured settlement transactions, particularly those who may be vulnerable to exploitation.
This ruling affects individuals who receive structured settlements, ensuring they are not pressured into unfavorable financial transactions. The decision highlights the court's role in safeguarding the interests of settlement recipients, aiming to prevent them from losing long-term financial security.
Background
J.G. Wentworth Originations, LLC, a company that specializes in purchasing structured settlement payments, filed a petition seeking court approval to acquire certain payment rights from Kiyoshi Wilkinson. The structured settlement payments in question included 12 monthly payments of $337.65 starting July 1, 2026, and additional payments scheduled through 2058, totaling approximately $605,649.60. In exchange, J.G. Wentworth offered Ms. Wilkinson a lump sum of $25,000.
The case arose under the Structured Settlement Protection Act (SSPA), which requires judicial approval for the transfer of structured settlement payments to ensure that such transactions are in the best interest of the payee. Ms. Wilkinson has a history of attempting to transfer her structured settlement payments, having made several applications in the past, some of which were granted while others were denied.
The Ruling
Judge Aaron D. Maslow presided over the case and ultimately denied J.G. Wentworth's petition. The court found that the proposed transfer was not in Ms. Wilkinson's best interest. Judge Maslow stated, "The findings necessary for a court to approve a transfer of structured settlement payment rights pursuant to General Obligations Law § 5-1706 have not been proved."
The court highlighted several factors in its decision, including Ms. Wilkinson's previous attempts to transfer her payments and the substantial discount being offered by J.G. Wentworth. The judge noted that the discounted amount of $25,000 was significantly lower than the fair market value of the payments, which could be over $178,000 based on federal interest rates.
Impact
This decision reinforces the protections provided under the SSPA, ensuring that individuals like Ms. Wilkinson are not exploited by factoring companies. The ruling serves as a reminder to settlement recipients that they must carefully consider the implications of transferring their structured settlement payments.
By denying the transfer, the court aims to uphold the legislative intent of the SSPA, which is to protect vulnerable individuals from losing their long-term financial security. This ruling may discourage companies from pursuing similar transactions that do not adequately serve the best interests of the payees.
What's Next
J.G. Wentworth has the option to appeal the court's decision. However, details on whether they plan to do so were not available in the court filing. The case may also influence future applications for structured settlement transfers, as it sets a precedent for the level of scrutiny such transactions will receive in court.